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Loan amortization spreads equal payments over the loan term. Each payment first covers accrued interest, with the remainder reducing the principal. Early payments are mostly interest; later ones mostly principal.
Steg-för-steg-guide
- 1Convert annual rate to monthly: r = annual rate ÷ 12
- 2Calculate n = total payments (years × 12)
- 3Apply: M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)
- 4Total interest = (M × n) − P
Lösta exempel
Ingång
$10,000 at 6% for 3 yrs
Resultat
$304.22/mo
Total interest: $951.92
Ingång
$250,000 at 7% for 30 yrs
Resultat
$1,663/mo
Total interest: $348,773